Goldman: Market stress elevated but not at level to force Fed to intervene

Higher volatility has led to increased market stress this week, Goldman Sachs economists highlighted in a Tuesday note.

"Most of the tightening has been driven by higher expected volatility in the equity and bond markets, while conditions in short-term funding markets have remained broadly stable,” economists wrote in the note. Since the weak July employment report last Friday, the equity market has declined by about 5%, and the 10-year Treasury rate has decreased by 21 basis points.

"This implies that, from a starting GDP growth pace of over 2%, it would likely take a large further sell-off to singlehandedly push the economy into recession."

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market correction has more room to run, says Goldman SachsGoldman Sachs strategist Peter Oppenheimer said the correction is stabilizing but not yet over.
Source: CNBC - 🏆 12. / 72 Read more »

Goldman Sachs: Seven takeaways from the market sell-offGoldman Sachs: Seven takeaways from the market sell-off
Source: Investingcom - 🏆 450. / 53 Read more »

Goldman Sachs: Correction has room to run, but bear market 'remains unlikely'Goldman Sachs: Correction has room to run, but bear market 'remains unlikely'
Source: Investingcom - 🏆 450. / 53 Read more »